REQUEST FOR PROPOSAL

Transcription

1 REQUEST FOR PROPOSAL PART 1: INTRODUCTION AND INSTRUCTIONS PURPOSE OF REQUEST FOR PROPOSAL (RFP) Utah Community Action (UCA) is seeking competitive proposals to provide retirement services. The selected organization for this project will report directly to the assigned UCA Project Manager and assume full responsibility for project completion. The purpose of this document is to provide details of the services required and establish the basis for an agreement between UCA and the service provider. UCA will also be issuing a separate RFP for Third-party Administration for 401k benefits and cafeteria plan administration (Dependent Care and FSA accounts) concurrently. Proposers may submit proposals for either one or both of the RFPs. Please also note that we also currently have an active RFP for HRIS software and services. AGENCY BACKGROUND Utah Community Action s mission is to empower individuals, strengthen families and build communities through self-sufficiency and education programs. Utah Community Action is a multifaceted agency that helps low-income individuals and families overcome barriers to selfsufficiency. The agency has approximately 600 employees and annual revenues of approximately $24M. Utah Community Action helps remove these barriers through six core programs: Adult Education Helps adults with low- to moderate-income levels get access to courses and certifications that can help them work toward self-sufficiency. Head Start Provides education and health services to young children who would otherwise not be prepared for Kindergarten. HEAT Helps struggling households pay their utility bills. Both yearly application and emergency need services are available. Case Management & Housing Helps families find and maintain safe, affordable housing. Nutrition Helps feed households in need, provides meals for Head Start classrooms, and offers educational programs to teach better eating habits. Weatherization Helps low-income households reduce energy costs and increase comfort and safety in their homes. Utah Community Action complies with the required federal regulations on procurement, as set forth in the Uniform Guidance 2 CFR Part 200. Efforts, including affirmative steps prescribed by federal regulation (if applicable), will be made by UCA to utilize small and minority-owned businesses, women s business enterprises, and labor surplus area firms when possible. A firm qualifies as a small business firm if it meets the definition of small business as established by the Small Business Administration (13 CFR , Subsector ) by having average annual receipts for the last three fiscal years not exceeding $27.5 million.

2 Utah Community Action currently has approximately $8 Million in plan assets with approximately 600 participants, which includes both current and former employees with assets in the plan. Plan assets are currently held with John Hancock. PROPOSAL SUBMISSIONS REQUIREMENTS By submitting a proposal, interested Parties acknowledge and agree that the scope of work, and evaluation process outlined herein are fair, equitable, and understood. Interested Parties further acknowledge that they have read this RFP, along with any attached or referenced documents. All costs incurred by Interested Parties in the preparation and submission of a proposal, including any costs incurred during interviews, presentations, or demonstrations are the responsibility of the Interested Parties and will not be reimbursed. Proposals must be received by November 22, Proposals received after the deadline will not be accepted. Proposals can be submitted via hard copy or electronic copy to the address provided below. Any proposal not meeting the requirements of this RFP may be rejected. All materials submitted will become the property of Utah Community Action. PROPOSAL KEY DATES RFP Released November 2, 2017 Questions due by proposers November 9, 2017 Responses to Questions Released November 14, 2017 Proposal Due Date November 22, 2017 Award Notice December 31, 2017 Utah Community Action may request interviews or meetings with any of the proposers to clarify any proposals. SUBMISSION INSTRUCTIONS AND CONTACT INFORMATION The preferred method of submitting your proposal is via electronic copy. If providing a hard copy, one (1) original and one (1) copy must be submitted prior to deadline at the following address: Utah Community Action Attn: Stacy Weight, CAO 1307 South 900 West Salt Lake City, UT General Contact: Stacy Weight, Chief Administration Officer, stacy.weight@utahca.org PART 2: SCOPE OF WORK AND PROPOSAL REQUIREMENTS To ensure a competitive and consistent review process each proposal submitted should include the following items and be organized with the outline provided below.

3 1. Letter of intent A letter outlining the general overview of the business information and individuals who will be involved in the RFP process. This letter should be a maximum of 2 pages and clearly identify the address that will provide services to Utah Community Action as well as contact information for the authorized representative. It should also include a date through which the proposal is valid (recommended 120 days). 2. Profile of Proposer Please include an overview of the scope of the company (local, national, international) and size. Also indicate if the company is a minority-owned business, women s business enterprise, or located in a labor surplus area. Also indicate the ability to do business in the state of Utah. The profile should also address the following questions: Your Company name and address: Year founded How many employees in your company are: Full-time: Part-time: Contract: Are you a Public or private company? Provide a brief history of your company. What is your primary business focus and core product? What is the average size (employee workforce) of your customers? What is the total value of assets in all defined contribution plans for which you provide record-keeping services? Are there any outstanding lawsuits against your company? If so, please explain what impact an unfavorable outcome would have on the company. 3. Client Services/Quality Assurance Please describe the team that would deal directly with us during the transition and on an ongoing basis. Indicate staff size, experience and turnover rates. What is the average number of clients managed by the plan administrator for plans of this size? Describe your organization s commitment to quality and your philosophy/approach to client services. Describe your service/timing standards. Do you guarantee service performance? If so, please describe.

4 What checks and balances do you have in place to assure plan administration integrity and accuracy including participant account data? 4. Recordkeeping/Administration Do you provide one main contact for the daily administrative needs of this plan? Do you provide daily valuation? What methods of data transmission are available? Describe in detail how your system processes contributions. Describe in detail, including timing, how your system processes withdrawals (i.e. in-service and hardship withdrawals). Describe in detail, including timing, how your system processes: 1. lump-sum distributions 2. systematic payments/installments 3. annuities 4. rollovers to another plan or an IRA 5. required minimum distributions What options are available to terminated/retired participants? Can funds be kept under the plan? Describe in detail how your system processes transfers/exchanges (including frequency/limitations). Are confirmations sent? Describe your process and methods of reallocation (percent and/or dollar). Can employer and employee contributions be tracked separately? Describe in detail your system s vesting capability. How many different schedules can your system support? Describe in detail how your system handles Federal and State tax reporting. Describe in detail how you administer Qualified Domestic Relations Orders (QDROs). What checks and balances do you have in place to ensure transactional integrity? Do you provide an administration manual? Will you recordkeep non-proprietary investment vehicles? Describe the process and systems used. What other administrative services do you provide? 5. Regulatory Services Describe your capabilities for the following: 1. Discrimination Testing ADP/ACP 2. Annual addition limitations 415(c)

5 3. Monitoring of elective deferrals 4. Identifying highly-compensated employees 5. Section 404c compliance assurance How do you address violations for any of the testing covered in the previous question? Can you assist us in the following areas of plan documentation design? If so how? 1. Customized plan document 2. Prototype plan document 3. Customized SPD 4. Prototype SPD 5. Qualification submission Describe the type of legal support included in your proposal and any fees that apply Do you provide either or both of the following: 1. Information to complete Form A signature-ready 5500 What fiduciary responsibility does your organization assume? How do you keep Plan Sponsors informed and updated on any regulatory and legislative changes? How will you ensure that our plan remains in compliance? How do you ensure that your recordkeeping system is in compliance with all regulations? Describe any past or pending litigation, within the last 5 years, relating to the services you are proposing. 6. Loan Servicing Describe in detail your loan processing capabilities. Do you have paperless loan capabilities? If so, describe. Describe the flexibility in your loan repayment processing (i.e., additional payments, multiple loans, missed payments). How do you handle delinquent and/or defaulted loans? What responsibility do we retain for initial and ongoing loan servicing? Describe any other features and/or limitations of the loan system not detailed above (i.e., loan modeling, amortization scheduling, etc.) 7. Reporting Describe the standard reporting package that you would provide us as well as the medium(s) used (provide samples). Describe any customized or ad hoc reporting capabilities including Internet capabilities.

6 Describe your standard participant level statements and documents (provide samples). Describe your customization capabilities for participant level statements. Can reports/statements be produced on other media? Please describe. What is the standard timeframe for providing each report after the reporting period ends? 1. Quarterly reports (plan sponsors and plan participants) 2. Annual reports (plan sponsors) 3. Initial contribution allocations (plan sponsors) 4. Ongoing contribution allocations (plan sponsors) 5. Enrollments and investment option changes (plan participants) 6. Distributions (plan participants) 7. Loans (plan participants) 8. Call center, internet access, and voice response system Voice Response System Describe the services available through your voice response system. How are transactions processed? How are transactions documented? Are confirmations sent? Describe how data is secured within the system (i.e., PIN, audit trail, confirmations). Describe the level of customization available within your VRS. What are the standard hours of operation? Are there any transactions that cannot be processed through the voice response system? Is the menu easy for participants to use? Does it include help information? Please describe the structure in detail. Can a participant elect to move from the VRS to a service representative? When and what services are available? How often is the data on the VRS updated? How does the VRS interface with the recordkeeping system? Internet Access Describe the account services and transaction capabilities available through your participant Web site. How are Web site transactions processed and documented? Are there any transactions that cannot be processed through your Web site? Describe how data is secured within the system (i.e., PIN, audit trail, confirmations). Describe the level of customization available for clients using your Internet services.

7 What are the standard hours of account access and transactional availability? If a participant elects to move from the Web site to a call center service representative, describe the interface between the Web site and the service representative. How often is the data on the Web site updated? How does the Web site interface with the recordkeeping system? Please identify your Web site account access and transactional availability statistics (average availability per month as a percentage). Call Center Include for each of the last three calendar quarters, statistics related to actual performance. 1. Number of calls 2. Average length of calls 3. Average response time 4. Percentage of calls requiring follow-up 5. Call abort rate 6. Percentage of incoming calls totally handled via VRS versus toll-free live service center representative assistance 7. Percentage of service requests handled via Web site versus call center and VRS. Do you monitor and/or tape toll-free calls? What are your case management procedures for calls that have service issues? What information is available to toll-free service representatives to allow them to effectively answer participant questions? 9. Communication and Education Briefly describe your background and experience in providing communication and education programs for plan participants. Identify the key elements provided as part of a standard communication and education program package included in your proposal. Identify non-standard elements to a communication and education program you may provide for an additional charge. Describe separately your initial and on-going communication and education program (including printed material, visits, training, etc.). If the program is tailored to a specific plan sponsor need, identify the critical issues to be determined in designing such a program. Can material be customized?

8 Describe the training provided to the plan sponsor s benefit and payroll staff. Do you provide communication and education material in a foreign language? If so, what language(s) and what material? Do you create all of your communication and education material in-house or through thirdparties? Describe the process you use to help plan sponsors measure the effectiveness of employee education efforts. Does your organization provide any services (i.e., personal questionnaires, software) that would help individual participants with financial planning? Describe any electronic education tools you provide, both software-based and web-based. Describe your position on providing investment advice to participants. What fiduciary responsibility do you assume if advice is provided? What is disclosed to participants regarding your role as a fiduciary? If advice is offered, is it in-house or via a third party? If applicable, describe your due diligence process for selecting the third party. Describe education tools or programs designed to support IRA rollovers and/or retirement distributions. 10. Conversion Process and Transition Services Explain your conversion process, including time frame, based on the options available (i.e. mapping, etc.). Is a black-out period required? If yes, how long is it and what is restricted or not available during that time? What involvement will be required from us during the conversion process? Do you provide a dedicated conversion team? What conversion audit reporting do you provide? Describe your process to ensure accurate conversion of all historical data. Do you have any limitations as to the format/media of conversion records? How are investments handled during the conversion process? How does your system handle conversion/set-ups of pre-existing loans from another recordkeeping system? How do you monitor the effectiveness and quality of your conversion process and team? 11. Computer Systems Capabilities and Hardware Describe the hardware platform and software system you use to recordkeep and administer plans.

9 Was the software developed internally, leased, or bought from another provider? Who has the ultimate responsibility/authority to make sure the software remains current to laws, regulations, client needs, etc.? How often is the system upgraded? What system enhancements do you have planned over the next three years for: Describe your documented disaster recovery plan. How often do you test your recovery system? Describe your maintenance and backup procedures including daily backups, retention timetable and off-site backup storage approach. Where are your off-site backup facilities located? Describe the method of maintaining plan sponsor and participant history on the system. Describe the valuation methods offered by your system. Are internal controls of your recordkeeping system audited by an independent accounting firm on an annual or more frequent basis? If so, please provide a copy of the most recent report. Does the system allow for plan sponsor customization/limits such as: 1. Transfer frequency 2. Minimum/maximum contribution percentages 3. Withdrawal frequency 4. Investment election changes Describe your system s maximum limits with regards to the following: 1. Investment funds 2. Money types 3. Loans 4. Transfers 12. Investment Menu Discuss your organization s ability to provide investment vehicles for defined contribution plans. Be sure to disclose if you are providing these vehicles in-house or through external managers. To the extent we wish to comply with 404(c), how can you assist us? How long have you been providing investment services? Please identify the number and types of investment vehicles you would make available to us. For each investment vehicle identified above, provide: 1. the inception date, 2. the name of the investment/portfolio manager,

10 3. a biography of the manager, 4. the investment vehicle objective, 5. the investment philosophy, 6. the expense structure (including any loads, load waivers, management fees, other expenses, 12b-1 fees, fee subsidies, etc.), 7. the comparative index(s) used by the manager, and 8. withdrawal provisions (including restrictions on transfers). For each investment vehicle, provide the annualized return for the 1, 3, 5 and 10 year (or since inception) periods ending on the last calendar quarter. For each investment vehicle, where appropriate, provide the standard deviation, alpha, beta, r-squared, and sharpe ratio for the 1, 3, 5 and 10 year (or since inception) periods ending on the last calendar quarter. For each balanced asset allocation and/or life style investment vehicle, provide the asset breakdown by cash, stocks, and bonds as of the last three calendar quarters. For each income investment vehicle, provide the average maturity, average duration, average yield, and average quality as of the latest 3 calendar quarters. For the stable value investment, describe the current and minimum interest rate guarantees, how interest is credited, and the frequency of rate changes. Furthermore, provide the make-up of the underlying portfolio including asset type, grade and percentage breakdown. Does your organization offer a self-directed brokerage window as a potential investment option? Please fully describe the service and fees associated with the administration of the brokerage accounts. 13. Trustee/custodial Services Will you act as or provide availability to trustee/custodial services? If you provide Trustee/Custodial Services, what are your fiduciary responsibilities? Describe checks and balances employed in your accounting system. Will you trustee outside investment funds? What is your turn-around time on check issuance? Do you process individual state tax withholding? Do you provide information to plan participants regarding options on distributions? Do you have a limit on the number of checks/wires available to participants who rollover their distributions? Do you provide consolidated year-end ERISA reports for 5500 filings? Do you maintain all loan documentation (i.e., promissory notes) as part of your files? Is your trust accounting system integrated with your recordkeeping system?

11 14. References Please provide three references of current clients who have similar plan demographics (i.e., size and plan design). At least one of the three should have converted within the last year. Please provide client name, contact name, address, phone number, services provided, and year they became a client. Please provide three references of former clients who had similar plan demographics (i.e., size and plan design). At least one of the three should have left within the last year. Please provide former client name, contact name, address, phone number, services provided, and year they became and the year they ceased to be a client and the reasons. 15. Expenses Please attach a schedule of all expenses or fees covering each of the services and activities identified on the following listing. Also, please identify if the expense is: one time or on-going breakpoint impacted participant paid (direct or account adjustment) guaranteed (and length of guarantee) performance adjustable charge discount oriented plan sponsor paid (billed and billing frequency) absorbed in determining daily investment share/unit value In addition to the expense schedule, please respond specifically to the following: What are the start-up/conversion costs and the termination costs? For how long will you guarantee specific expenses? What are the factors you consider in determining future increases and when they are to occur? Are there additional charges made at the time of plan changes we initiate or legislated or regulated changes? Please address the differences should we use a prototype or individually designed plan. Describe what plan consulting services are included and related hourly charges and out-ofpocket expenses.

12 How are expenses adjusted if a sizable number of participants are added or removed from the plan (such as either acquisition or divestiture or partial plan termination)? Do you offer any expense arrangement whereby we share in your firm s upside potential as participants and plan assets increase over time? If you offer an alliance relationship, please identify any offset to expenses. 16. Miscellaneous Should the service provider believe additional information about their capability or services would be beneficial to the Plan Sponsor in evaluating its proposal it should be provided here. Please do not repeat information previously provided. PART 4: SELECTION PROCESS Evaluation will be completed using a weighted scale with the specified factors below. Service offerings Prior experience with non-profit clients Conversion support Fees Adherence to RFP instructions Total 40 points 10 points 20 points 25 points 5 points 100 points Selection will be made to the proposer who is the most advantageous to Utah Community Action based on the selection criteria outlined above. UCA reserves the right to not select any proposer. Following the closure of the RFP all proposers will be notified of the selection. PART 4: WRITTEN QUESTIONS Questions regarding the RFP must be received in writing by November 8, Questions can be submitted to Stacy Weight, CAO (stacy.weight@utahca.org). All questions will be responded to in writing and may be made available to all proposers.